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The federal government again rejected an open-pit gold-copper mine in B.C.'s Interior on Wednesday, citing environmental concerns.

The adverse environmental effects of Taseko Mines' New Prosperity project could not be justified, according to a decision by federal cabinet that was announced by Environment Minister Leona Aglukkaq.

The decision comes after an October federal environmental assessment panel report found serious flaws in the Vancouver-based company's project.

After considering the panel report, the federal government agreed with its conclusions, according to a Canadian Environmental Assessment Agency news release.

"The Government of Canada will make decisions based on the best available scientific evidence while balancing economic and environmental considerations," said Minister Aglukkaq in the release.

But Aglukkaq suggested Ottawa has not yet closed the door on the prospect that a mine could yet be built in the area, located about 125 kilometres southwest of Williams Lake.

"The government will continue to make responsible resource development a priority and invites the submission of another proposal that addresses the government's concerns," she said.

Taseko's newly rejected proposal was its second go-round and the mine was strongly supported by the provincial government. B.C. Energy Minister Bill Bennett twice travelled to Ottawa to lobby for approval of the project, but the federal government rejected its first proposal in 2010 and its second this week.

The October panel report found the mine, which would have covered 27 square kilometres in the Fish Creek watershed, would result in the total loss of Little Fish Lake to a 12-square-km, 115-metre-high tailings pond and likely contaminate nearby Fish Lake and the upper Fish Creek system.

Brian Battison, Taseko's vice-president of corporate affairs, told The Sun the decision was a terrible disappointment for thousands of people.

"We fundamentally disagree with the decision made by the Government of Canada and we would say that this is not the end," Battison said. "Saying no to a project of this magnitude and importance to B.C. is not an acceptable conclusion. This project is just too important."

The company projected the mine would create 550 direct jobs, generate $340 million in annual gross domestic product, and bring the government more than $1 billion in revenue over two decades of operations. The project is among the world's largest undeveloped gold-copper deposits.

Battison said after the first proposal was rejected by the federal government, the door was similarly opened for the company to submit a revised plan.

"They invited us to come up with a new design and to address concerns," said Battison. "We took them up on the invitation and we got the finest engineering firms in the world to create a new design."

But Taseko's president alleged in November that the federal government and the panel had ignored a newly designed tailings basin in preparing its report. The government balked at the claim, but Battison raised it again Wednesday, stating Aglukkaq relied on "flawed conclusions" to arrive at the wrong decision.

"The Government of Canada has turned its back on the people of the Cariboo," he said, adding it had abandoned its own priority of generating jobs and growth.

When asked if Taseko — which is the 75% owner and operator of the Gibraltar open-pit copper-molybdenum mine north of Williams Lake — would consider submitting yet another revised proposal, Battison said it was too early to tell.

"Hard not to believe that this may be the end, but it's too early to speculate on that, really," he said.

Chief Joe Alphonse, tribal chairman of the Tsilhqot'in National Government, applauded the minister after the decision and told The Sun, "it's time to celebrate."

Alphonse accompanied Assembly of First Nations Chief Shawn Atleo and other aboriginal leaders on a trip to Parliament Hill earlier this month, where they told politicians that approving the mine would deal a huge setback to Ottawa's relationship with aboriginal Canadians.

The area of the rejected project is used by Tsilhqot'in and Secwepemc communities for hunting, trapping, fishing and for ceremonial and spiritual practices, the panel heard in a series of hearings, and tailings from the mine would have covered burial and cremation sites.

"This gives hope to all First Nations that there are ... people in this country that will listen to us," he said.

"The message to industry and politicians," said Alphonse, "if you want to move forward on projects like this, come through our doors, work with us, deal with us, listen to our concerns ... let us be included in the development proposals and we'll move together."

But he added that the need for clean water and a clean environment had to be respected. "When these mines are long done and over with, those water systems are still going to be there," he said.

Bennett said he was disappointed at Ottawa's decision.

"I feel absolutely terrible for the people of the Cariboo," he said in an interview. "They really needed this, they needed an opportunity for good jobs like this."

Bennett said he met with as many as 10 cabinet ministers during his trips to Ottawa and felt they understood the B.C. government's position in support of the project.

But he said he also understood that Aglukkaq was relying on the October panel report.

"One politician to another, I get why they had to make the decision they did," said Bennett. "I think they did listen, and I think there was an interest in thinking and talking about how could this project be allowed to go forward. But I think ultimately their own panel prevented them from making the decision we wanted."

Bennett said he still believes it's possible for Taseko to build the mine without contaminating the surrounding groundwater and lakes, because the province already has similar mines operating without concern.

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Feds reject Taseko's New Prosperity Mine over environmental concerns

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